AN ANALYSIS OF DEVELOPMENT DYNAMICS IN THE CHINESE TEXTILE AND APPAREL INDUSTRIES SINCE 1978

摘要

The introduction of economic reforms under the Open Door policy in 1978, unleashed pent-up economic forces that spurred the rapid development of the Chinese economy. The textile and apparel industries have been placed in the vanguard of the reform process from the outset. Assisted by plentiful quantities of foreign investment and extensive technology transfer, in 25 years, they have achieved a pre-eminent position as manufacturers and exporters in the global textile economy. In moving from a self-sufficiency-based, centrally planned system towards a commercially-driven, export oriented sector, the industries have experienced radical changes. These have affected the consumer needs they satisfy, the distribution channels they service, the product mix they manufacture, the technology and skills base they employ, the strategies that drive companies, and the structure and organization of the industries. While the industries have experienced huge success in terms of output and export growth, obstacles to upgrading have provided a drag on progress and have been reflected in poor profitability, specifically within the state-owned sector. In the process, the textile and apparel industries, their distribution channels and markets have experienced profound changes in terms of their size, scope, structure, technology and organization. This paper considers the development dynamics of the Chinese textile and apparel industries with respect to changes in their business environment between 1978 and 2003 and considers the outlook for the future development and configuration of the industries. The analysis has been based on an extensive review of business, academic and government publications in Chinese and English, as well as selected interviews with industrialists within China.